Anne Webster (Mallee, National Party, Shadow Assistant Minister for Regional Development) Share this | Hansard source

The demographics and health trends in the Mallee region are disturbing. In terms of disadvantage and need, we have three times the Indigenous population of Victoria, we have an older demographic, our weekly income is two-thirds of that of the average Victorian and health needs are higher. We have 50 per cent higher asthma sufferers; higher numbers of those with cancer and heart disease; and 25 per cent higher mental health needs than the average Victorian, and yet we have fewer GPs. We have almost 20 per cent fewer doctors per 100,000 people than Melbourne.

I have a disturbing story to tell and will be using my parliamentary privilege to do so. Tristar Medical Group was established by Dr Khaled El-Sheik in 2003 and offered bulk billing at its clinics. The ABC reports that, at its peak, Tristar operated 59 clinics across Australia, with 440 employees and 165 doctors. But in the past five years, 35 clinics have shut down. In 2019, Tristar was under significant financial stress and had been so for the previous 18 months. At the time Dr Khaled El-Sheikh stated, 'However, I am guaranteeing you that payments and all moneys owed for services rendered are secure now and into the future.' A credit report into Tristar's main operating company by Equifax shows it was deemed a high credit risk. A payslip for a Tristar doctor, obtained by the ABC, shows they have been paid under a separate company name with a different ABN. This reporting included that doctors had gone weeks and even months without pay, and that staff on temporary visas were nervous to speak up for fear of repercussions. Some of those doctors contacted me desperate for support, which I gave.

Tristar Medical Group was placed under voluntary administrator McGrathNicol Restructuring on 24 May this year. Many of the doctors in Mildura were not paid for up to 10 weeks, and $6.3 million was owed to Tristar employees across their 12 clinics. All Tristar services ceased on 19 August this year, when the sale of Tristar Mildura was unsuccessful the night before. The doors closed without warning.

Just last week, the ABC reported a Fair Work Ombudsman investigation is now underway—thank goodness! The Fair Work Ombudsman is investigating Tristar for potential breaches of the Fair Work Act for the second time, after inquiries were made in 2019. The administrator's report says Tristar was likely insolvent from 2019 or earlier. The report goes on to state Tristar's records detail: $1.9 million of unpaid payroll tax; $4.4 million in unpaid superannuation; outstanding tax payments of $5.1 million; Tristar had not lodged any tax returns since 2019; some unpaid service fees owed to doctors date back to July 2020; and balance sheet accounts had not been maintained since 2018.

The critical outcome here is that the sudden closure of Tristar with less than 24 hours notice has left 15,200 people in Mildura without a doctor. There is no capacity at other clinics. All clinics have already closed their books. There are 15,200 patients who cannot access scripts, test results or medical records, and there is no phone number. There are people who are unaware they have a serious diagnosis. I was at the Tristar clinic the week after it closed, and people were still turning up not knowing it had closed.

Dr Khaled El-Sheikh was a director in the company when he owed $6.3 million in wages. I've been told he has been reported to ASIC. This also is good. However, the process normally takes 12 to 18 months. I wait to hear what the FWO and ASIC find. I hear his brother is now going to run two new clinics in Mildura and Red Cliffs, with his brother Khaleed El-Sheikh practising. This plan had undoubtedly begun months ago. Dr El-Sheikh is today advertising his new practice on Facebook, calling it the Kure Clinic, which is now open, where previous Tristar doctors are joining him. This kind of business behaviour ought never to happen in Australia. However, the current dearth of doctors in regional centres means unscrupulous business practice can follow. (Time expired)

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